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Assume that apples are an inferior good. Draw a perfectly competitive market for apples and a firm selling apples in the long run equilibrium where price is $10 and the firm’s equilibrium quantity is 50. Explain the following situations graphically and in words (Draw and label side-by-side graphs for each).
a. EXPLAIN what happens in the short-run if coustomers incomes increase?
b. EXPLAIN the process by which this market returns to the long-run equilibrium
1. why does price discrimination result in greater physician incomes than a single price to everyone?2. what are the
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